I recently had a broker send me a multifamily property and I'm trying to structure the deal. Are there any no money down strategies for MFPs? What are some key factors in structuring a deal? How much is too much?
3.5% AND Renovations
FHA 203k loan (http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou)
Homepath Owner Occupied
Not as cheap, but come with renovation options attached to the loan:
Homepath Investment (SFH only)
Homepath Investment (Duplex only)
Homepath Investment (3-4 Unit Buildings)
Owner carry contract.
Conventional loan plus either a second lender, or a private investor to pay the downpayment.
These are the 2 easiest options to go with. besides the VA which include very strict guidelines.
Watch out for the PMI that can really eat into your returns.
A conventional lender is NOT going to make a loan with a borrowed down payment. They will ask, and if you deny the down payment is borrowed you're committing loan fraud.
You could take on equity partners. But if you take on equity partners who fund 100% of the down payment, then end up with 100% of the ownership, or something very close to it.
Equity partners are perfect for this situation. You can always raise 100% of the down payment from an equity partner and then split profits on the backend (when you refinance or sell). Typically what we do in our syndications is offer our equity partners 70% of the profits and we only take 30% for managing the investment. If you have any questions or need capital feel free to call.
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